March 1, 2021

Learn How to Reduce Your Taxes with Future Scholar

Couple Sitting Together Looking at Computer

As a parent, grandparent, or loved one, few joys can be greater than seeing a child realize his or her full potential. While there are many meaningful ways you may choose to offer support along the way, there can be no mistaking the considerable power of education to fuel a child’s future success. When you contribute to a Future Scholar 529 College Savings Plan, you are helping dreams come true, but that’s just the start!

2 Must-Know Tax Benefits of 529 Contributions

Saving with Future Scholar does more than help provide financial resources for a child’s educational goals. It can also help you grow your own savings by providing important tax advantages and increased flexibility.

Here’s a closer look at two of the top perks:

1. Deductible on SC State Income Taxes

Future Scholar contributions are deductible on your South Carolina state income tax return, including those you make all the way up to the filing deadline. This special perk gives you the option to deduct your contributions for either 2020 or 2021.

2. Tax-Free Earnings

In addition to saving on your South Carolina state income taxes, you’ll also be thrilled to know that with Future Scholar, any earnings in your account accrue tax-free! And when the time comes to pay for college, withdrawals used for qualified educational expenses, including the earnings portion, are not subject to taxes. This perk makes Future Scholar one of the most efficient college savings options available!

Flexibility Puts You in Charge

Along with tax advantages like deductible contributions and tax-free earnings, you’ll also enjoy the control that Future Scholar provides. Not only can you choose the investment strategy that fits your needs, but you can also decide how, when and where the funds in your account will be used. What’s more, contributions can be made in one of three convenient ways: (1) By check, (2) By a one-time bank draft, or (3) By setting up a recurring payment from your bank account.

A Top-Rated Plan

With its convenient tax advantages as well as its significant achievements, Future Scholar is consistently rated one of the top state-sponsored 529 plans in the country.

You can help make dreams come true for a special child - and take some of the sting out of tax season for yourself - by investing in a Future Scholar 529 College Savings Plan today!